What is the primary purpose of a living trust?

The primary purpose of a living trust is to avoid probate costs and minimize tax liabilities. A living trust is established during a person's lifetime and allows for the management and distribution of their assets to beneficiaries without requiring the assets to go through the lengthy and costly probate process after their death. This not only helps simplify the transition of assets but also can significantly reduce the tax implications during the transfer of wealth.

By establishing a living trust, the trustor can retain control over their assets while ensuring that their wishes are carried out efficiently upon their passing. This approach can help protect the privacy of the assets and also reduce potential disputes among heirs, as details of a trust are not public record like a will.

The other options, while related to trusts in some way, do not encapsulate the primary function of a living trust as accurately. For instance, while the trust can provide benefits after the trustor's death, its key advantage lies in avoiding probate and minimizing taxes. The assertion that it is solely for managing assets of minors is incorrect since living trusts can be used for individuals of all ages. Additionally, a living trust does not prevent heirs from receiving assets; rather, it facilitates a smoother transition of those assets to them.